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Disney partner news boosts firm

何珊
0 CommentsPrint E-mail Shanghai Daily, December 4, 2009
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Shanghai Lujiazui Finance and Trade Zone Development Co rose the most in a month yesterday after its parent company was reported to be the major Chinese partner in the building of the Shanghai Disneyland theme park.

The Shanghai-listed property developer jumped 6.57 percent to end at 29.37 yuan (US$4.3), the biggest one-day gain since November 2. In contrast, the benchmark Shanghai Composite Index dipped 0.16 percent yesterday.

The surge in its share price came after a report by 21st Century Business Herald, which quoted an unidentified government official as saying Shanghai Lujiazui Group Co will own 60 percent in the company that will partner with Walt Disney Co to build the theme park. Both Shanghai Lujiazui Group Co and the Walt Disney Company's Shanghai representative office declined to comment on the report.

There is speculation that the parent company will inject some of the Disney-related assets into its listed arm.

The National Development and Reform Commission, China's top economic planner, said last month that it has approved the construction of a Disneyland in Shanghai. The 116-hectare project in Chuansha Town in the Pudong New Area is expected to generate billion of yuan in revenue annually after its completion.

According to the report, Shanghai Jinwin Investment Co will hold 30 percent and Shanghai Nanhui District Real Estate Co 10 percent in the company that will partner with Walt Disney.

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